Crypto and Blockchain Technology

Linn Wealth Capital Management has been at the forefront of advising clients on coins and tokens in the digital asset space.

Blockchain technology has created a growing demand for boarderless peer to peer decentralized transactions. Specifically within Decentralized Finance (DeFi), financial services are shifting away from the incumbent traditional companies like large banks, insurance and brokerage companies who normally facilitate transactions. The blockchain can authenticate transactions without a third party. This enables individuals to initiate these services on their own while reducing cost & maintaining their privacy. For example, Smart contracts are now able to complete a transaction and execute a contract with the terms of the agreement between buyer and seller being directly written into lines of code that exist across a distributed, decentralized blockchain network.

 

There are many considerations when it comes to these investments such as:

  • Which coins to purchase, use an active trading strategy or a passive buy and hold, or a combination of both?
  • Should you purchase them in a brokerage account using a fund, or own the coins directly?
  • Do you keep them in a hot storage, cold storage on a personal wallet or at a trusted Custodian?
  • Which Custodians are deemed the safest and most reliable and reputable, and which have the best features for trading vs storing?

We will help you understand what is happening in this dynamic and evolving space, and the best way to navigate and profit in it. We offer solutions that fits the needs of all types of investors in this space, whether it be an experienced investor who has purchased these assets on their own, or first time investors to the world. In either case, we will be advising on a fiduciary level, and always looking out for our client’s best interest.

 

LWCM has partnered with Gemini Trust Company, an industry leading Crypto solution for our clients. Gemini is a New York State Trust Company and Qualified Custodian under the New York Banking Law. They are aligned with the Federal Financial Institution Examination Councils (FFIEC) and are the world’s first SOC 1 & 2 certified crypto exchange (audited by Deloitte.) In addition, both their exchange & custody accounts are insured by Marsh. The insurance on the exchange accounts are adjusted to match that of of the investments, while the secure cold storage has 200 Million in coverage.

 

For additional information, check out our recent blogs:

 

As with all non-publicly traded crypto assets, a complete loss of capital is always a potential outcome.

Disclosure:
Investing in digital assets like bitcoin or ethereum, e.g., whether directly through an exchange or indirectly through another product, involves the general risks of investing in other investment vehicles. In addition, the value of digital assets are subject to significant fluctuations, can be highly volatile, and can change dramatically even intra-day. The price of digital assets could drop precipitously for a variety of reasons, including, but not limited to, a crisis of confidence in the network or a change in user preference to competing assets.
Digital assets represent an emerging asset class. As a result, the market infrastructure through which it is exchanged and the regulatory foundation upon which it is regulated are still in their respective infancy when compared to more traditional assets like stocks, bonds, mutual funds, ETFs, or similar. Digital assets are not protected by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation. Any exposure to digital assets can result in substantial losses and bitcoin investors should be able to withstand significant if not complete loss of invested capital.
Digital assets facilitate decentralized, peer-to-peer financial exchange and value storage that is used like money, without the oversight of a central authority or banks. The value of digital assets are wholly derived from their monetary premium and is not backed by any government, corporation, other identified body, or other physical assets. The exchange and availability of digital assets are dependent on the availability and proper functioning of the internet, the electronic platforms storing such digital assets, and the owner’s control and possession of any needed password or digital key. Any downtime, unavailability, cybersecurity breach, or loss of access is a risk that a digital asset investor should be prepared to bear. The loss, destruction, or compromise of a private key may result in a loss of the digital assets, typographical errors may lead to loss of the digital assets, and digital asset trade errors cannot be unwound. Accordingly, the indirect exposure to digital assets through securities of publicly listed companies is also susceptible to these risks.
Past performance is not a guarantee of future returns. Investing in securities and other investments involve a risk of loss that you should understand and be willing to bear. You are reminded to discuss these risks with LWCM.

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